FAIR Plan
What Does FAIR Plan Mean?
The FAIR plan, which stands for Fair Access to Insurance Requirements, is a state-mandated program aimed at assisting individuals who are unable to obtain insurance coverage for their property due to exceptionally high risks. People living in areas such as flood plains, tornado alleys, and hurricane-prone coastal regions may qualify for coverage under the FAIR plan.
Insuranceopedia Explains FAIR Plan
Insurance companies often decline policies for individuals whose property is considered too high of a risk, as insurers may not find it profitable to issue property insurance in such cases. The FAIR Plan Act ensures that these individuals do not have to go without insurance coverage for their property.
While the FAIR plan is government-sponsored, policyholders who qualify for it are still required to pay premiums.
